Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: It is expected that 10,800 units will be sold at a price of $312 a unit. Maximum sales within the relevant range are 14,000 units. Required: 1. Prepare an estimated income statement for 20Y7. Check My Work 1. Use the data to compute the total costs. Remember that some of the costs have a fixed and a variable cost component. Check My Work 1. Use the data to compute the total costs. Remember that some of the costs have a fixed and a variable cost component. 2. What is the expected contribution margin ratio? (Round to the nearest whole percent.) % 3. Determine the break-even sales in units and dollars. Units units Dollars $ 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $ 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars $ Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. (Round to one decimal place.)